S.J.VAZIFDAR,J. - (1.) This is an appeal against the order of the Income Tax Appellate Tribunal, allowing the respondent-assessee's appeal against the order of the Assessing Officer in respect of the assessment year 2007-08.
(2.) The appeal is admitted on the following substantial question of law as framed by us: - "Whether a person who fails to deduct at source under section 194C is not liable to pay interest under section 201(1A) if the payee of such amounts has files a nil return or a return showing a loss?" The Tribunal answered this question in the affirmative in favour of the assessee/respondent. We have overruled the order answering the question in the negative in favour of the Revenue/ Appellant.
(3.) The question arises in the following facts. The assessee is a Board established under Section 18 of the Punjab Infrastructure (Development and Regulation) Act, 2002 (Punjab Act) and for the purposes of that Act. It is wholly controlled and managed by the Government of Punjab. The agreements which are the subject matter of this appeal have not been produced. That, however, need not detain the decision in the appeal. The facts stated in the orders of the authorities under the Income Tax Act, 1961 and the appeal are sufficient for the decision of the appeal. Suffice it to state that the assessee entered into a contract with a party for achieving its objects under the Punjab Act under various models such as the Build Operate and Transfer, Design Build Operate and Transfer and Operation and Management models. Under these models-contracts the payments are made to private parties referred to therein as concessionaires.;